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ZURU Files Lawsuit Against MGA Entertainment

LOS ANGELES--(BUSINESS WIRE)--

Leading international toy and consumer products company, ZURU Inc. announced today its wholly owned subsidiaries Creative Impact Inc. and ZURU, LLC have filed a complaint against MGA Entertainment, Inc (MGA) in the United States District Court in the Central District of California. The lawsuit challenges MGA’s efforts to eliminate healthy competition in the toy industry by wrongly asserting nonexistent copyright, trademark and trade dress intellectual property rights against ZURU’s successful 5 Surprise product line and other unlawful business practices.

ZURU launched its widely successful and innovative 5 Surprise range of products in March 2018. The 5 Surprise line excites the imagination by enabling children to unwrap, peel and reveal 5 Surprise toys in 5 or 4 segment spherical capsules.

In both online postings and a California state court proceeding, MGA has alleged that ZURU’s 5 Surprise product and related packaging infringes MGA’s purported intellectual property rights in L.O.L. Surprise!. MGA’s allegations are based on nonexistent or overly broad interpretations of alleged trade dress and other intellectual property rights. To the extent there are any valid intellectual property rights, those rights are not infringed at all by ZURU. ZURU’s lawsuit alleges that MGA is engaged in unfair competition through online bullying designed to unfairly maintain market share, stifle legitimate competition and monopolize the unwrapping surprise toy segment.

ZURU seeks (i) a declaration that ZURU’s use, sale, marketing and other exploitation of 5 Surprise does not infringe MGA’s alleged trade dress rights in L.O.L. Surprise! and does not cause a likelihood that consumers will be confused as to the source or sponsorship of 5 Surprise; (ii) that the Court order MGA’s California Registration for trade dress related to its L.O.L. Surprise product be canceled; (iii) that the Court enjoin MGA from further assertion of any alleged rights based on the California Registration or the alleged trade dress rights against ZURU; (iv) that the Court order MGA to permanently cease its unfair and illegal business practices related to ZURU and its 5 Surprise and other products; (v) restitution and disgorgement of all MGA’s profits associated with its unfair business practices; and (vi) damages and costs of suit, including reasonable attorneys’ fees, along with any other relief or damages deemed appropriate by the Court.

“We are passionate at ZURU about innovation and making high quality toys and play experiences,” said Anna Mowbray, Chief Operating Officer of ZURU. “ZURU’s fresh and novel approach has made us one of the fastest-growing toymakers in the world. Unfortunately, it’s also made us a target of bigger and outworn competitors who would seek to bully disruptors from the market. Our commitment is to innovation and fair play—for children and the market -- and that is what this lawsuit is about.”

About ZURU

ZURU is a disruptive and award-winning company that designs, manufactures and markets innovative toys and consumer products. Inspired by kids and imaginative play, ZURU is one of the fastest growing toy companies in the world, reaching as high as #6 among US toy companies, and is known for their agility, creativity and new-age manufacturing techniques. The company that started in New Zealand now has a significant global presence and sells product to most major retailers in over 120 countries. ZURU has delighted millions of families all over the world with brands such as Bunch O Balloons™, X-Shot™, Rainbocorns™, Robo Alive™, Smashers™, 5 Surprise™ and Metal Machines™ as well as through partnerships with entertainment properties, including Nickelodeon, Disney, Universal Studios and DreamWorks. With a strong commitment to the community, ZURU supports Captivating International, local China orphanages and also student development programs in Asia and in New Zealand. ZURU will continue to pave new ways for kids to play and focuses on reimagining what this looks like every day.

Visit us at www.zuru.com, Like us on Facebook @ZURUToysCompany, or Follow us on Twitter @ZURUToys.

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